Edinburgh Airport Requires Major Overhaul After Sale

Added: (Wed Feb 01 2012)

Pressbox (Press Release) - Investors keen on purchasing Edinburgh Airport are drawing up proposals for another major facelift to improve efficiency and attract more long-haul flights less than two years after it benefited from a £40 million overhaul.
Potential bidders for the airport, which is expected to attract offers in excess of £400m, say it needs significant changes to areas such as security, access to the terminals, check-in and the departure lounges – even though current owner BAA spent around £40m on an upgrade in 2010.
One potential bidder said many aspects of the airport’s design and operation were “shoddy” and considerable improvements would be needed, particularly if Scotland has ambitions to attract more long-haul carriers.
John Swinney unveiled the new-look Edinburgh Airport, with an enlarged security hall and new shopping and eating facilities in 2010.
The prospectus for the sale was distributed to interested parties earlier this month and the first bids are expected in early February.
Spanish-owned BAA, who is being force to offload the airport by the Competition Commission, is keen to conclude the sale by the summer. It is likely to attract a large number of offers, and several names have already been connected to a potential bid.
Frontrunners are expected to include private equity group 3i, which is working with the Universities Superannuation Scheme and fund manager M&G; Gatwick and London City airports owner Global Infrastructure Partners; and a consortium involving Carlyle Group, Sir Angus Grossart and Sir Brian Souter, the founder of Souter Investments.
A further Scottish consortium led by Ben Thomson, chairman of Inverleith Capital, and former Edinburgh Airport managing director Richard Jeffrey has lined up the finance for a potential bid, while representatives from JP Morgan’s infrastructure fund are understood to have travelled to Scotland earlier this month to sound out potential backers.
Arcus European Infrastructure Fund, the owner of Forth Ports, may also table an offer.